FOUNDATION IN ARTS

INTRODUCTION TO
BUSINESS

INTRODUCTION TO BUSINESS
(CHAPTER 1,PART 1)

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 INTRODUCTION TO BUSINESS
LEARNING OBJECTIVE(S)

1. Define what is business

2. Identify what are the goals of business
3. Discuss what are the functions of business
4. Discuss what are the differences between
shareholders and stakeholders

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 CHAPTER OUTLINE
•
Definitio
n & Four
Business
Resource
s

• Profit &
• Stakehol
der
• Chapt Three
Profit
Theory er 1 Function
s

• Four
Function
s of
Business

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 INTRODUCTION TO BUSINESS: A
DEFINITION & RESOURCES

• Definition
of Business

•
Informatio • Human
nal Resources
Resources
• 1.
Busine
ss

• Financial • Material
Resources Resources

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 INTRODUCTION TO BUSINESS: A
DEFINITION
Pride, M. William, Hughes, J. Robert, Kapoor, R. Jack
The organized effort of individuals to produce and sell,
for profit, the products and services that satisfy society’s
needs.

Euthans F and Hodget (1984)

Business as the organized, profit-seeking approach to provide people
with goods and services they want

Jackson, H. John and Musselman, Vernon (1987)

Business as an activity that meets people’s economic needs and
wants; a firm organized to engage in such activity

Steade & Lowry (1987)

A Business firm is a commercial or industrial enterprise owned and
organized to buy, sell, manufacture, or provide products or services
for a profit
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 INTRODUCTION TO BUSINESS:
THE ORGANIZED EFFORT OF INDIVIDUALS
•
• Material Informatio
Resources n
Resources

• Human • Financial
Resources Resources
• Busines
s

• A business must combine all four resources effectively to be

successful.

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 INTRODUCTION TO BUSINESS:
THE ORGANIZED EFFORT OF INDIVIDUALS

Human Resources
• People who provide labor for
compensation.
• Wages, profit, dividends, stocks,
bonds.

Material Resources
• Raw goods used for processing.
• Also includes machines and
buildings.

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 INTRODUCTION TO BUSINESS:
THE ORGANIZED EFFORT OF INDIVIDUALS
Informational Materials
• Knowledge of the markets
• Skills and Expertise to make the
products.

Financial Resources
• Funds or Capital required to start or
maintain operations.
• Loans, Shares and Profit.

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 INTRODUCTION TO BUSINESS:
PROFIT & THREE FUNCTIONS OF PROFIT

• Definiti
on of
profit

• PROF
IT

• Three
purpos
es of
profit

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 INTRODUCTION TO BUSINESS:
BUSINESS PROFIT

Profit = What remains after all

business expenses have been
deducted from sales revenue
(income)
 The three purposes of profit

 To reward business owners for producing goods and services

consumers want
 As payment for business owners assuming the risks of ownership
 To increase capital to maintain/grow the business.

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